Mediacom Communications announced the completion of $475 million in new term loans, the proceeds of which will be used to pay off existing debt. The small-market operator also said that as a result, Standard & Poor’s Ratings Services has raised the cable company’s credit ratings to BB- from B+, with a stable outlook, and hat Moody’s Investors Service affirmed its B1 corporate family rating and revised its outlook from stable to positive.
The loans were a $250 million senior secured term loan and a $225 million revolving credit facility, pursuant to a new amended and restated bank credit agreement between the operating subsidiaries of Mediacom LLC and the lenders thereto. Mediacom LLC is a wholly-owned subsidiary of MCCC.
“We are pleased with the outcome of these financing transactions, which extend maturities of certain debt arrangements,” Mediacom said in a statement.
The new term loan has a final maturity of March 31, 2018, and the new revolving credit facility expires on Feb. 5, 2019. Proceeds from the financing transactions were principally used to repay certain existing term loans scheduled to mature on Jan. 31, 2015.
“We are pleased with the outcome of these financing transactions, which extend maturities of certain debt arrangements,” said Mediacom executive vice president and chief financial officer Mark Stephan in a statement. “We enjoy today the best credit metrics in the company’s history, given our success with debt reduction and the meaningful deleveraging of our balance sheet since Mediacom completed its go-private transaction in March 2011. The ratings upgrade by Standard and Poor’s and the revised positive outlook by Moody’s underscore our strengthening financial position.”
